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2022 (1) TMI 735 - AT - Income TaxReopening of assessment u/s 147 v/s assessment u/s 153C - proceedings initiated u/s 132 - AO jurisdiction to reopen the assessment based on the document found and seized during search action when the IT Act prescribes completely separate mechanism under section 153A to 153C dealing with the search cases which should have been followed - addition being alleged cash loan taken u/s 69D - HELD THAT:- We observe from the reasons recorded for initiation of reassessment proceedings that the proceedings u/s 148 of the Act were initiated heavily relying on the documents found during search conducted in the group concerns of the Lodha group in which the employee, Shri Somnath Nair, of the group is also covered. The documents found in his position were confiscated and the Assessing Officer has fully satisfied that these documents are belongs to assessee. After recording the satisfaction, he proceeded to initiate the proceedings u/s 148/147 instead of section 153C of the Act. The assessee has raised the separate ground before Ld.CIT(A) and Ld.CIT(A) conveniently did not address this issue and he only dealt with the procedure adopted to initiate and completion of the reassessment u/s 147. He has not even whispered on this aspect. See cases BATTA YADAMMA [2018 (11) TMI 1694 - ITAT HYDERABAD] and SRI SURYADEVARA AVINASH [2019 (9) TMI 898 - ITAT HYDERABAD]. The correct course of reassessment is under section 153C not under section 147 of the Act. The Assessing Officer has no options to choose the proceedings except following the due procedure laid down in the Act particularly in the case of search, in which clear procedures are laid down by the legislature. Therefore, Assessing Officer has no jurisdiction to initiate proceedings under section 147/148 in the case of proceedings initiated under section 132 of the Act - Decided in favour of assessee.
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